Insurance co told to pay up after premium row

Failure of an insurance company to keep its client updated about the status of premium paid and later refusing to pay the final premium amount has proved dearer for it. District consumer disputes redressal forum has accused it of deficient in its service and slapped a fine on it.

According to the complaint, Sector 14 resident Anil Bhardwaj had bought a life insurance policy from Bajaj Alliance life insurance company named ‘capital unit gain’. Impressed with policy’s features, Bhardwaj bought it on September 19, 2007 and had to pay an annual premium of Rs 10,000.

“I regularly paid the premiums of Rs 10,000 for three years and thereafter, I approached the opposite party about its status regarding surrender. I was issued a statement showing fund value of Rs 27,296 and subsequently, I applied for the surrender,” said Bhardwaj.

“To my utter shock, the company informed me that the policy was in lapsed state as the first premium draft dated September 6, 2007 could not be encashed by the opposite party in time. I even offered to pay Rs 10,000 in cash at that time but the opposite party flatly refused,” he added.

Thereafter, the complainant served a legal notice (dated January 27, 2011) but to no avail. In his complaint, Bhardwaj alleged that he was duly issued the policy and if the same had lapsed due to non-payment of the first premium then the opposite party should not have accepted the subsequent premiums.

In its reply, Bajaj Alliance lawyer said that the policy lapsed due to non-payment of premium and the complainant was fully aware about the same and there was no deficiency in service.

The forum maintained that the complainant paid all premiums and it is crystal clear that the amount towards the first premium was duly deposited with opposite party in time.

After hearing the arguments, the forum directed the insurance company to pay the matured amount to the complainant. Besides, the company has been directed to pay Rs 10,000 as compensation for mental agony and harassment suffered by the complainant and Rs 5,000 as litigation cost to him.

http://timesofindia.indiatimes.com/city/chandigarh/Insurance-co-told-to-pay-up-after-premium-row/articleshow/18784304.cms

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